Basic Steps For Starting A Small Business

Dave Ramsey has proven he can run a very successful small business and run it debt free.  He gives some very basic, yet so important, pointers on starting your home business.  Going into debt to start a business without any revenue being generated is a high risk to take when the odds are against you in the beginning.  Be sensible about your strategy and follow Dave’s wise advice -

I Want to Start a Small Business
from daveramsey.com

Doesn’t it sound like a great idea to start your own business, maybe from home, so you can be in control of your destiny, have flexible hours and not have to worry about a control-freak boss?

Unfortunately, it’s not as simple as that. Small-business owners work unbelievably hard, and even hard work doesn’t guarantee success. According to the Small Business Association, only two-thirds of small businesses survive two years.

There’s no magic formula to making a business work, but here are a few tips to get you thinking in the right direction:

Love what you do!

What would you do if money and time were not factors? What do you have a passion for? According to Success magazine, the entrepreneur is the only one who can go from sheer terror to sheer exhilaration and back every 24 hours. It’s a roller coaster ride, so you better love what you’re doing in order to survive it. That doesn’t mean you won’t have bad days if you’re doing work you love. Everyone has days when they want to throw up their hands even though they love what they do. But if you don’t love it and are just doing it for money, it won’t last long.

Save up. Don’t borrow.

Start your business debt free with an emergency fund in place. It’s easier if you can start part-time and get the kinks worked out while you still have other income. If you’re going to quit your job and walk out, you definitely need substantial savings. You have to think about how long it will take from starting your business to the time money will start rolling in and plan accordingly. Never use credit cards for a business loan or to float you through hard times. It’s a good way to cause your business to fail. Saving up for purchases is key. Pay with cash. Make sure your business can pay its own way. Don’t go out and purchase a bunch of new equipment and supplies in hopes that the business will succeed. Start off small.

Do your homework.

If you want to be skinny, talk to skinny people and see what they do. If you want to open an eBay store, talk to people who have successful eBay stores. Talk to people who have started similar businesses, read about the industry, and do some research.